From Zepto To Blue Tokai — Indian Startups Raised $466 Mn This Week

Funding momentum across the Indian startup ecosystem gathered steam in the final week of the ongoing month. Between August 26 and 31, startups cumulatively raised $466.1 Mn across 22 deals, a 75% jump from $265.2 Mn secured via 16 deals in the preceding week. 

Funding Galore: Indian Startup Funding Of The Week [ Aug 26 -31 ]

Key Startup Funding Highlights Of The Week

• After weeks of speculation, quick commerce major Zepto announced that it has bagged $340 Mn in a ‘follow-on financing’ round, led by General Catalyst, at a valuation of $5 Bn. 
• Buoyed by Zepto’s mega funding round, the consumer services sector emerged as a sectoral leader this week with startups in the segment raising $340.1 Mn via two deals.
• Fintech and ecommerce sectors trailed consumer services at a sectoral level. While ecommerce sector saw startups raising $45.8 Mn via five deals, fintech startups bagged $44.9 Mn across seven deals.
• Venture Capital firm Antler was the most active investor this week, backing two startups.
• Seed funding zoomed in the week to $8.3 Mn from the $1 Mn raised by startups at this level last week.

Mergers and Acquisitions This Week

• VerSe Innovation acquired digital marketing solutions firm Valueleaf Group in an undisclosed deal during the week.
• SaaS unicorn BrowserStack acquired enterprise tech platform Bird Eats Bug in a $20 Mn deal. With this acquisition, the startup will leverage the enterprise tech platform’s tech stack to streamline bug reporting processes. 

Other Developments Of The Week

• Early stage VC fund Whiteboard Capital marked the final close of its second fund at INR 300 Cr, doubling the initial target of INR 150 Cr.
• Actor Amitabh Bachchan’s family office reportedly bought a minority stake in foodtech major Swiggy ahead of its IPO.
• D2C meat delivery startup Zappfresh’s parent, DSM Fresh Foods Ltd, filed its draft red herring prospectus (DRHP) for listing on the SME platform of BSE, BSE SME.
• Startup incubator T9L QUBE roped in cricketer Virender Sehwag as an investor.
• VC firm Aroa Venture Partners secured an investment commitment of INR 40 Cr ($4.8 Mn) from Small Industries Development Bank of India (SIDBI).
• Edtech startup Eruditus is in talks to raise $150 Mn in a fresh funding round led by Texas-based private equity firm TPG at a likely valuation of $2.3 Bn.